New home closings fell year-over-year in May in the Honolulu, HI market, swinging downward off a year-over-year lift in April 2016. New home closings saw a 59.1% fall from a year earlier to 27. This came on the heels of a 78.8% climb year-over-year in April.

A total of 662 new homes were sold during the 12 months that ended in May, down from 701 for the year that ended in April.

New home closings accounted for 2.5% of overall housing closings. This is down from the 6.4% of closings a year earlier. Following a year-over-year increase in April, closings of new and existing homes also jumped year-over-year in May.

Pricing and Mortgage Trends

The average per-unit price of newly sold homes grew year-over-year to $842,579 in May, up 29.4% from last year. This lift is smaller than the 39.3% gain in April year-over-year.

Average mortgage size on new homes jumped year-over-year along with new home prices. In May 2016, there was a 22.4% gain in the average mortgage size, reaching $655,863. In April 2016, average mortgage size sank 5.9% from a year earlier.

Other Market Trends

Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings increased from 62.1% of new closings in May 2015 to 77.8% of closings in May 2016. Conversely, the share of new home closings belonging to attached units fell to 22.2% of closings from 37.9% of closings.

For all new homes sold, the average unit size slid 3.2% year-over-year to 1,521 square feet in May 2016. The average size of newly sold homes moved from 1,528 square feet in April 2015 to 1,648 square feet in April 2016.

Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 8.0% of existing home closings, down from 8.6% a year earlier. The percentage of existing home closings involving foreclosures went from 2.8% in May 2015 to 3.7% in May 2016 and REO closings as a percentage of existing home closings declined to 4.3% from 5.8% a year earlier.

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